The International Finance Corporation (IFC) has approved a $600 million corporate loan to ENGIE Energía Perú, one of Peru’s biggest power companies, to boost renewable energy projects and speed up the shift to cleaner power generation, according to the announcement. The first chunk of money – $120 million – comes as a Green and Sustainability-Linked Loan, the first deal of this type between IFC and ENGIE Peru. This financing structure meets international standards and ties loan terms to specific environmental and social targets.
The money will fund three major projects: building the Central Expansión Solar Intipampa facility in Moquegua (51.7 MW), refinancing the Duna and Huambos wind farms in Cajamarca (36.8 MW), and part of the Chilca-BESS battery storage system (26.5 MW) at the ChilcaUno power plant. These projects will help Peru expand its clean energy capacity despite infrastructure and market challenges.
The loan includes three key performance targets that ENGIE Peru must hit. First, they need to increase renewable energy’s share of their total power capacity. Second, they must create climate adaptation plans for all their facilities to build resilience against weather changes. Third, they have to get more women into management roles in an industry that’s mostly run by men.
“This green and sustainability-linked loan reflects our commitment to developing energy solutions that not only drive economic growth but also promote job creation, climate resilience, and access to clean energy,” said Cheryl Edleson, IFC’s director for infrastructure in Latin America. She called it a bold step toward cleaner, more inclusive energy for Peru.
ENGIE Peru’s CEO El Mehdi Ben Maalla said the IFC loan lets them keep expanding renewable projects while meeting top standards for risk management and environmental impact. The company already generates 30 percent of its power from renewables and has over 1,600 MW of clean energy projects in development.
